If you want to purchase a vacation home, a condo can be the perfect option. With a condo, you get access to a place to relax, without the responsibility of taking care of the exterior of the building, along with a yard and outside area. This means you just get a living space that you can use for yourself and rent out as well.
When it comes to investing in a vacation condo, you will need to consider the following things.
1. Be Aware of Additional Costs
When purchasing a condo, it is important to be aware of the additional costs you will have to take on in addition to the mortgage. You are going to need to pay for taxes, insurance, maintenance, and utilities. Additionally, with a condo, you will have to pay some sort of building association fees. Finally, if you plan to rent out the property, you will need to hire a property manager.
When looking at vacation condos to purchase, ensure you can afford all of these costs.
2. Avoid Timeshares
When looking at potential vacation condos, avoid timeshare situations. Timeshare situations are different than buying a condo and being the sole owner of the property. With a timeshare, you will be part of an ownership collective of the condo, and you may not have the ability to rent out the space or the freedom to use it whenever you want.
Instead, focus on situations where you are buying the condo as the sole owner. That way, you can control what you do with it.
3. Always Look at Building Rules
When you look at condos, be sure to read the association rules for the building. For example, some buildings may not allow you to rent out your condo, or they may only allow you to rent out the condo for a certain number of days a year. If you want to turn your property into a vacation rental that generates income, ensure you purchase a condo in a building that allows you to do so.
4. Location Is Key
When looking at vacation condos, the location matters. You want to purchase a condo near other vacation features, such as a condo within walking distance of the beach or that is right next to a famous big park or other attraction. This will make the condo more appealing as a vacation rental and ensures you can get the renters you need for space.
5. Keep It Affordable
Finally, when purchasing a vacation condo, keep it affordable. Don't purchase a condo where you can't afford to pay the mortgage. Getting money from renters should be an added bonus that allows you to pay down the mortgage faster, not the income you are counting on. That way, you can always afford to pay for the property.
When it comes to purchasing a vacation condo, purchase one that you can afford the full costs for. Choose a location that has a vacation appeal. Look for full ownership opportunities, and always be aware of building rules before purchasing. Finally, work with a real estate agent who understands the local market to find a condo you like, and that will generate your income.